Darker Dubai property market index shows as price drop in second quarter

Oversupply of residential property in Dubai is expected to peak in 2012, has 25 vacancies, and 28% according to the latest Landmark Advisory.

At the same time lead to distress sales to accelerate the falling prices, according to the Dubai and Abu Dhabi Real Estate reports for the third quarter of 2010 for consultation. "With prices falling faster than rents, thus enhancing yields upward," said Jesse Downs, director of research and advisory services to relevant advice.

This is a positive picture of the market for higher returns to attract investors aware of weak fundamentals and the perceived risk. Currently, funding is still limited, which means that investors will continue to dictate market development, "he explained. The report states that sales volumes fell in the second quarter than the first. Prices have fallen by 5% villas and apartments dropped by 5.8% due to limited buyers and tighter credit restrictions.

In neighboring Abu Dhabi quality problems could lead to a rapid restructuring of the market that offer better news is delivered, the report also. Downs expects only 20% of high-end properties in the pipeline to meet the standard, which will have an impact on housing prices in mid-stretch. "However, we expect this trend will only be temporary, with a weakening of the results and is not recovering Once the high end developments are delivered, he added.

In Dubai and Abu Dhabi rental costs fell in all areas of villas in Dubai to 4.4% and apartments down 5.8% during the quarter. Abu Dhabi rents have fallen by 11%, down sharply from 3% in the first quarter of the year. "These are clients by offering the following supplies on the island such Khalidiyah Palace, Al Aryam Tour, Tour d’Argent and Wave. Static prices and rents down have resulted in new performance compression, currently at 5.1% and we expect that dividends will continue to compress in the short term, "said Downs.

The figures confirm those published by consultants Colliers International earlier this month which showed house prices fell 4% in the second quarter of this year compared to a 2% increase in the first three months of 2010. Consulting predicts that about 33,000 new units will be placed on the market at the end of the year is lower than the initial estimate of 41,000 because of project delays or rescheduling. "There are already more than 340,000 homes in Dubai with an average occupancy of 87%, with an expected further decline," said Regional Director of Colliers International, Ian Albert.

"The market simply can not absorb the additional supply, unless the population increases, and / or dismissal of the action is slower," he added. Albert has also warned that the dramatic decline in rents home ownership a less attractive option for investors in terms of revenue generation, another factor that weakened demand.

Why Invest in Dubai Properties?

At present Dubai is a famous city in the world. For its constant booming at different parts such as business and real estate industry, Dubai has become the center of attraction for millions of people and community around the world. Now Dubai is moving away from its traditional oil reliance to a more balanced digit supported on business and services. Therefore, the frugalness of Dubai has grown with more and more tourist regions coming up to meet this aim.

There are several reasons why you should study Dubai for your actual realty investment. In fact Dubai properties are today’s hot commerce properties in the international actual realty market. Investment in apartments, offices or villas in Dubai can be the most essential mark in life. Buy, sell or rent, you can do anything you desire and in each case you can wait a quick return of your investment. Actually Dubai is today a service center and a financial service hub for the foreigners. The number of foreigners is increasing period by period in Dubai. They are gathering there to work with a high pay and tax-free status. The standard concept amount of properties in Dubai is today typical. At present the single apartments are providing the best facilities in terms of Dubai rentals. The foreigners who work in Dubai are single individuals. And so this would be a great actual realty assets offer for you.

There are today lots of attractions that are shapely in Dubai and this would termination in an increase in tourist visitors in Dubai. If you can manage a concept in some famous places same Jumeirah Village, Dubai Sports City and Jumeirah Lake, The Burj metropolis etc. then you have a beatific opportunity that you will be able to rent discover your concept to people going there on holiday. Moreover, when you study the cost of metropolis concept with the other famous places such as London property, New York concept etc, you will find that the prices are comparatively low but the quality is equal. But it is hoped that the prices of actual realty assets in metropolis will be set to fly within the next few years. Dubai has become an captivating place for big investment, because investing in metropolis is surprisingly easy with smallest administration. The country wants private assets and to increase its population. Political stability and low crime are also the captivating features of Dubai. International visitors see safe and the presence of heavily armed personnel and army is not present in Dubai.

In fine, it can be said that metropolis represents digit of the rising markets and it will be absolutely safe as well as profitable to equip in metropolis actual realty now.

Dubai Real Estate Market

Dubai is the seventh emirate, United Arab Emirates is the second area, after Abu Dhabi. Most of the revenues of real estate in Dubai and tourism. This is one reason that most people prefer Dubai Real Estate lucrative contracts and profits. Dubai developments is simply magnificent, and the center of attraction for visitors. The climate in Dubai is also dry and therefore suitable for real alternatives to invest in.

There are several options available to buyers in Dubai property market offers a wide range of people. Apartments, flats, villas, condos and more, buyers have the option to choose something that fits your needs and tastes. Buyers who think that the real estate market in Dubai requires a large investment may find different properties of what they are looking at incredibly reasonable prices. The best part is that people can easily obtain the property in a deal, without having to worry about additional costs.

Just as buyers, investors can obtain more easily by investing in real estate market in Dubai. There are several options for investors, where you can buy an asset at a reasonable price and then sell prices fruitful to make huge profits. Dubai Real Estate has made it easier for many people to earn huge profits from the property and get the best from the market. Everyone needs to remember, he joined the laws, which are essential, especially to buy or sell a property. If you are new to real estate, property agents therefore offer much assistance in the management of documents and other legal obligations required.

Middle East Markets Fall Ahead of Dubai Creditor Talks

Markets opened down across the Gulf this morning amid continued nervousness among investors over whether Dubai World will secure a standstill on its debt repayments.

The Dubai Financial Market was down 1.75 per cent this morning as the struggling state-owned conglomerate opened crunch talks with more than 90 banks to secure agreement for a six-month suspension of all repayments on its $22 billion debts.

In Abu Dhabi, which last week stepped in with a $10 billion bailout for Dubai World, the main index was down 0.81 per cent, with investors concerned that Dubai’s state owned businesses will continue to depend on its oil rich neighbour.

Markets were also down in the region’s largest economy, Saudi Arabia, as well as Kuwait, Qatar, Oman and Jordan.

Leading creditors have signalled, ahead of the meeting, that they are prepared to agree to the standstill on repayments and will attempt to force smaller banks into accepting a restructuring of Dubai World’s debts.

Opening at the Dubai World Trade Centre this morning, these are the first official talks between Dubai World and all its creditors since the state owned conglomerate stunned international markets by requesting the standstill on November 25.

Banks with smaller stakes in Dubai World are expected to demand immediate repayment in full today. Those with long-term interests in Dubai and the Gulf region will seek to persuade them to accept a longer-term restructuring, including the sale of some Dubai World assets.

Bankers signalled to The Times yesterday that a longer-term restructuring will enable many of Dubai World’s real estate assets to regain much of their former value, following the collapse in the city’s property market this year.

Going into the talks, Dubai World has indicated it expects negotiations to be lengthy and complicated. However, representatives added that the company now has sufficient cashflow for the coming months and is in the strongest shape it has been in since the November 25 announcement.

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